MTD for landlords: how Making Tax Digital for Income Tax works for rental income

Landlords must use Making Tax Digital (MTD) for Income Tax if their qualifying income, which is gross rent plus any self-employment income before expenses, is over £50,000 on their 2024-25 tax return. That has applied since 6 April 2026, and the threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

If you're in, you keep digital records of your rent and property costs, send a quarterly update to HMRC through compatible software, and submit your tax return through that software. This guide covers what that means for landlords in particular: how rent is counted, how jointly owned property works, letting agents, foreign property and non-resident landlords.

Key facts for landlords

Does MTD for Income Tax apply to me as a landlord?

It applies if you're an individual landlord registered for Self Assessment, your qualifying income is over the threshold, and you aren't exempt. HMRC sets out the thresholds and dates in Find out if and when you need to use Making Tax Digital for Income Tax.

HMRC checks your Self Assessment return and writes to you if you need to join. HMRC says that even if you don't get a letter, you must still check your qualifying income yourself and sign up.

We cover the thresholds, exemptions and the "I have an accountant" question in more detail in Do I need MTD for Income Tax?, so this guide sticks to the parts that are specific to landlords. To check your own position in a minute, use the MTD eligibility checker.

If you let property through a limited company, or you're not sure how your share of a jointly owned property is split, speak to an accountant before you rely on this guide.

How landlords work out qualifying income

Qualifying income is your total income from self-employment and property before expenses, based on the tax return for the earlier year. For a landlord, that means your gross rent, not your profit after mortgage interest, repairs or agent fees. HMRC's qualifying income guidance gives this example:

• £25,000 from rental income
• £27,000 from self-employment income

That's qualifying income of £52,000, which is over £50,000.

Income that doesn't count includes PAYE employment income, your share of profit as an individual partner in a partnership, dividends, the State Pension and private pensions. So a landlord with a large salary and modest rent may be well under the threshold. You still report that other income on your tax return.

A few other points from the same HMRC page that often affect landlords:

• Selling a property. If you sold a let property but still have another property or self-employment income, the rent from the property you sold still counts towards qualifying income for that year.
• Stopping letting altogether. If all your property and self-employment income stopped before 6 April 2026, you don't need MTD for Income Tax. HMRC says you should tell it, otherwise it may sign you up based on the information it holds.
• Part-year lettings. HMRC annualises income for sole traders, but landlords need to annualise property income themselves. For example, six months of rent would be doubled to work out the yearly figure.
• REITs and property funds. Income from UK Real Estate Investment Trusts (REITs) or Property Authorised Investment Funds (PAIFs) doesn't count.

MTD for landlords with jointly owned property

Jointly owned property is where landlords get the most questions, and HMRC's rules here are more relaxed than many people expect.

Only your share counts towards the threshold

Your share of the rent from a jointly owned property counts towards your qualifying income. HMRC's example: you and your sibling jointly own a property that brings in £50,000 of rent, you each get an equal share, and you have no self-employment income. Your qualifying income is £25,000, so MTD for Income Tax wouldn't apply to you until April 2028, when the threshold drops to £20,000.

If you only get told your share of the income after expenses have been taken off, HMRC uses that net figure for qualifying income.

You only record your share

HMRC's digital records guidance says you only need to create digital records for your share of the income and expenses from jointly let properties. Your share forms part of your UK property business, alongside any properties you own outright. You also don't need to link your digital records to the other owner's records.

You can keep less detailed records

For jointly let property, you can choose to:

• create less detailed digital records, or
• leave the expenses out of your quarterly updates, or
• do both

Less detailed records means one digital record for each category of property income in an update period, and one for each category of expense in the tax year. HMRC's example: instead of three records showing £1,000 of rent each month, you can create one record for the quarter showing £3,000.

Leaving expenses out of quarterly updates means your updates show only the rent from the joint property. You then add the expenses after the tax year ends, before you submit your tax return. HMRC says you can do this by resending your fourth quarterly update with the expenses included, or by adjusting the category total in your software. See Send quarterly updates.

One catch: this only applies to jointly let property. If you also own other properties outright, their income and expenses still need to go in every quarterly update.

What landlords need to record

Each digital record needs the amount, the date and the category. MTD for Income Tax uses the same categories as Self Assessment. Your property income includes rent, premiums for the grant of a lease, reverse premiums and inducements. Expenses include costs such as repairs and maintenance.

All your UK properties are one business

If you have several UK properties, they're legally treated as one UK property business. You don't need separate records for each one, and your software adds everything together into one quarterly update. Your share of jointly let UK property goes into the same update.

Simpler categories if rent is under £90,000

If your total UK property turnover is under £90,000, you can categorise your records in less detail. For a sole trader that means just income or expense. Landlords with residential property have one extra step: you must still record whether an expense is a restricted finance cost, such as mortgage interest. If your turnover reaches £90,000, you'll need to categorise everything in full for that year.

Mortgage payments

A mortgage payment is part capital and part interest. HMRC says you can either record just the interest, or record the full payment and make an adjustment before you finalise your tax position.

Letting agent statements

Many letting agents pay you the rent after taking off their fees and other costs. If you only know the net figure, HMRC says you should:

1. ask for the full amount of rent before expenses were taken off
2. record the full rent as income
3. record the expenses separately

Rent-a-Room and the property allowance

If you're in MTD for Income Tax and you used Rent-a-Room relief or the property income allowance on your last return, HMRC's digital records guidance explains when you still need digital records for that income. In short, if you have to declare it, you'll usually need to record it. You claim the property allowance when you submit your tax return through your software.

Keep your originals

HMRC doesn't receive your receipts or statements, only category totals. You still need to keep original records, such as bank statements, invoices and agent statements, for at least 5 years after the 31 January deadline for the tax year.

Foreign property and non-resident landlords

UK residents with property abroad

If you're UK tax resident, your gross rent from foreign property counts towards qualifying income along with UK property and self-employment income. HMRC's example is a UK sole trader who rents out a property in France: both count.

All your foreign properties are treated as one foreign property business, and that's separate from your UK property business. That means a separate quarterly update for foreign property. Unlike UK property, HMRC says you must create separate digital records for each individual foreign property, including your share of any jointly let foreign property. Your software then adds them together for the update.

Non-resident landlords with UK property

If you weren't UK tax resident in 2024-25, HMRC only counts your UK property income and any self-employment income on your UK tax return. Foreign income that isn't on your UK return doesn't count. HMRC's example is someone tax resident in Spain who rents out a UK property and is a sole trader in Spain: only the UK rent counts.

Many non-resident landlords won't need MTD for Income Tax this tax year anyway. According to HMRC's exemptions guidance, if your 2024-25 return included the SA109 residence page, you're automatically exempt for 2026-27. If you didn't include it but reasonably expect to include it on your 2025-26 or 2026-27 return, for example because you're non-resident in that year, you can apply for the exemption. Either way, if your qualifying income is over £30,000 you'll need to use MTD for Income Tax from the 2027-28 tax year.

Quarterly updates and deadlines for landlords

You send a quarterly update for each property business you have: one for UK property, one for foreign property, plus one for each self-employment if you also trade. Updates are cumulative, so each one covers the tax year so far. If you spot a mistake, correct the record and the fix goes into your next update.

You must still send an update for a quarter with no rent and no expenses, for example while a property is empty between tenants.

The 2026-27 quarterly deadlines are 7 August, 7 November, 7 February and 7 May, and your tax return is due by 31 January 2028. 7 November 2026 falls on a Saturday, so aim to send your update by Friday 6 November. See every date in MTD for Income Tax deadlines 2026-27, and our step-by-step guide to the 7 November deadline, which includes a landlord checklist.

HMRC won't give penalty points for late quarterly updates in 2026-27. You still need to send them all before you can submit your tax return, and penalty points do apply to a late tax return.

Free MTD software for landlords

HMRC doesn't provide MTD software. You need software from a recognised provider, and HMRC's software guidance says it must support all your income sources and work with your update periods. For landlords, check that it handles UK property, foreign property if you have it, and any other income you report on your return. You can search for products with HMRC's software finder, which includes a filter for products with a free version.

If you keep your rent records in a spreadsheet, you can carry on doing that and use bridging software to send your updates.

Using AATAX as a landlord

AATAX is on HMRC's list of recognised software for MTD for Income Tax. Its HMRC listing (reference D6Q7XM) shows UK property and foreign property as ready now, along with both standard and calendar update periods.

The individual app is free for landlords and sole traders. You don't need a card to sign up. You connect your HMRC account, then upload bank statements, receipts, letting agent statements or spreadsheets (CSV or Excel .xlsx). AATAX reads the documents and you review and confirm the records, including where an agent has paid you rent net of fees. Then you send your own quarterly updates and, after the year ends, your tax return. Before you send the tax return, you can see the tax HMRC works out.

If an accountant looks after your tax, they can run MTD for Income Tax for you, and you can point them to AATAX for accountants.

Get started

AATAX's individual app is free for landlords. Upload your statements, check the figures and send your quarterly updates and tax return yourself. No card needed to sign up. Get started free

Sources (GOV.UK, checked 10 October 2026)

• Find out if and when you need to use Making Tax Digital for Income Tax
• Work out your qualifying income for Making Tax Digital for Income Tax
• Use Making Tax Digital for Income Tax: Create digital records
• Use Making Tax Digital for Income Tax: Send quarterly updates
• Find out if you can get an exemption from Making Tax Digital for Income Tax
• Penalties for Making Tax Digital for Income Tax
• Choose the right software for Making Tax Digital for Income Tax
• Find software that works with Making Tax Digital for Income Tax (HMRC software finder, including AATAX's listing)

This page is general guidance, not tax advice. If you're unsure how the rules apply to you, speak to an accountant or contact HMRC.